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AT&T Hints Wireless Will Be AT&T’s Rural Broadband Solution; ‘Customers Will Pay More’

AT&T: Landlines may be a thing of the past in rural areas served by AT&T.

AT&T customers in the company’s rural service areas are likely to see wireless broadband as AT&T’s answer to rural America’s demand for Internet access.

Speaking on AT&T’s quarterly results conference call, Ralph de la Vega, president and CEO of AT&T Mobility and Consumer Markets yesterday previewed the forthcoming investor and analyst conference scheduled for Nov. 7 to discuss AT&T’s future in the rural landline business.

“I think there is a place in some rural areas where I see the outline, that [wireless] could serve as an alternative to wired broadband,” de la Vega told a Wall Street analyst from Goldman Sachs. “We are going to be talking to you about that on November 7, giving you more details about our thinking of how we can use this technology. And, quite frankly, the customer reception to the technology [is good] in terms of their willingness to pay for great quality data in large, large amounts.”

Some analysts anticipate AT&T is also likely to announce some additional expansion of the company’s U-verse platform to an additional 3-5 million customers that were not previously scheduled to see the service in their area. The build-out would take 12-18 months to complete. But that still leaves up to 15 million rural AT&T customers with either no broadband or the company’s slower DSL service. For many of them, AT&T sees wireless Internet in their future.

At the core of AT&T’s wireless broadband solution is the company’s LTE 4G network. AT&T is stressing it intends to roll out LTE upgrades in both rural and urban areas, unlike its nearest rival Verizon Wireless, which has prioritized upgrades on urban areas. AT&T claims its current network performs at speeds of 5-12Mbps — faster in low demand areas. In areas where AT&T has not bothered to provide DSL service, the company has repeatedly stressed it believes wireless delivers the best bang for the buck.

Unfortunately for rural consumers, access is not likely to come cheap, congestion will reduce overall speeds, and plans will include usage caps that are draconian in comparison to the company’s wired broadband services.

AT&T is a strong believer is monetizing data usage by gradually eliminating the unlimited data plan the company started at the dawn of the smartphone era. The future at AT&T is usage-based pricing.

“I think that more customers we have on usage-based plans the better we are,” de la Vega told investors.

In the last quarter alone, AT&T earned $6.6 billion from its wireless data service — up more than $1 billion (18%) compared to the same quarter last year.  AT&T now takes $26 billion annually to the bank just from its wireless data earnings.

Currently there are 2 comments on this Article:

  1. Bob61571 says:

    On November 7th, I’m not sure who will be madder:

    AT&T”s suburban/rural customers
    OR
    supporters of the losing Presidential candidate!?!?

  2. Markfm says:

    AT&T’s approach is going to be lovely for rural people who would like to use netflix or similar streaming video services, capped 4G with added $ for more GB…

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  • JD: CLEAR has without a doubt been the absolute BEST internet service I’ve ever (and I’ve used several ISP’s since 1991) used, PERIOD!!! Will Sprint ...
  • Jason: I agree, cap to limit congestion is a lie. So with capping everyone you have high congestion for the first two weeks of the billing cycle then it fal...
  • Jason: I work from home and I'll be damned if they are going to charge me any fees or cap my usage. Just wait until Google fiber comes to Phoenix and the ex...
  • chris: was just curious to what cox had to say about all this cash cow bussiness and heres what they told me Thank you for choosing Cox Communications....
  • Joe V: I hope the people of New Jersey are happy. They voted for Chris Christie and this is exactly what they got....
  • Susan: After diligently watching my credit score for over a year and how negative as well as positive postings affect it, I have a hard time believing that o...
  • David Therchik: An intense investigation needs to put into this! As soon as one starts I bet they'll stop charging/cheating people from over usage. Before they bought...
  • Charles Bingham: I did but customer no service was no help - said it did no good to have pass word with symbols, cap and small letters and #'s. IF only I had an alte...
  • Phillip Dampier: That assumes this customer had access to a working usage meter and notification messages and ignored them. Evidently it was big enough of a problem fo...
  • Are you kidding me...: "Over the years" people are using the internet differently. If your bill went up, you have usage. Responsible would be calling and talking to them ab...
  • Charles Bingham: Actually my usage has decreased over the years as I sold my business and only kept the internet for a few tax returns that I still do, no employees no...
  • Are you kidding me...: This entire article reeks of "poor me, I'm a victim and I can't be responsible about my own Internet usage, my own bills or my own actions." Grow up....

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